AN ACT to amend chapter eleven of the code of West Virginia, one
thousand nine-hundred thirty-one, as amended, by adding
thereto a new article, designated article thirteen-j,
relating to the establishment of a neighborhood investment
program; specifying a short title; setting forth a
legislative finding and purpose; defining terms; setting
forth requirements for eligibility for tax credits;
requiring certification of project plans by the West
Virginia development office; requiring payment of a project
certification fee to the West Virginia development office;
specifying sanctions, procedures, penalties, interest and
notice requirements relating to failure to timely pay the
project certification fee; creating revolving fund;
specifying accumulation and administration of fund; appropriating funds out of general revenue; specifying
deemed disapproval for applications not certified by the
West Virginia development office within a given time;
specifying prompt notification to applicants of
certification or denial of certification of project plans;
specifying that qualified charitable organizations which
receive certification of a project may receive eligible
contributions; specifying that taxpayers who make eligible
contributions may gain entitlement to the tax credit;
specifying that all applications for certification of a
project plan filed under the article shall be public
information; creating the neighborhood investment program
advisory board; specifying powers and duties of the
neighborhood investment program advisory board; specifying
that the director of the West Virginia development office or
the designee thereof shall be the ex officio chairperson of
the neighborhood investment program advisory board;
specifying qualifications for membership on the neighborhood
investment program advisory board; specifying appointment
terms for members of the neighborhood investment program
advisory board; specifying limitations on selections of
appointees to the neighborhood investment program advisory
board; specifying terms of members of the neighborhood investment program advisory board; specifying the method of
selection and appointment for members of the neighborhood
investment program advisory board; specifying quorum
requirements, meeting requirements and funding requirements
for the neighborhood investment program advisory board;
requiring that the neighborhood investment program advisory
board make an annual report; specifying duties of the
neighborhood investment program advisory board; prohibiting
assistance by the neighborhood investment program advisory
board of project sponsors to solicit support or donations;
prohibiting voting by members of the neighborhood investment
program advisory board who are affiliated with an applicant
for project certification; setting forth criteria for
project evaluation of proposed neighborhood investment
program project applications by the neighborhood investment
program advisory board; specifying requirements for approval
or disapproval of a proposed neighborhood investment program
project by the neighborhood investment program advisory
board; specifying requirements for certification of approved
projects by the director of the West Virginia development
office; specifying the amount of credit allowed to eligible
taxpayers; specifying application of the credit over a
period of five years beginning with the tax year of the taxpayer when the contribution is made; specifying annual
application of the credit; prohibiting application of the
credit against employer withholding taxes; specifying that
unused credit shall be forfeited; specifying the manner in
which modifications to federal taxable income shall affect
application of credit; specifying the method for asserting
the credit against tax; setting forth annual filing
requirements; specifying that a tax credit reporting
schedule be filed; authorizing disallowance of the credit;
specifying the total maximum aggregate tax credit;
specifying the beginning date for filing and the manner of
filing of applications for certification of project plans
with the West Virginia development office requiring that
such applications be considered for approval or disapproval
by the neighborhood investment program advisory board in a
timely manner; requiring that when the total amount of
credits certified by the West Virginia development office
under the article equals the maximum amount of tax credit
allowed in any state fiscal year, no further certifications
shall be issued for that fiscal year; specifying that
applications for certification of project plans shall be
void on the last day of the fiscal year; specifying
recapture of the tax credit; specifying the statute of limitations for the issuance of assessments; specifying that
the tax commissioner shall annually publish the name and
address of every taxpayer asserting the credit on a tax
return and the amount of any credit asserted under the
article; specifying that statutory information
confidentiality provisions do not apply to information which
is required to be published; authorizing the performance of
audits and examinations by the tax commissioner and
performance of joint audits and examinations by the tax
commissioner and the West Virginia development office;
authorizing the sharing of information between the tax
commissioner and the West Virginia development office;
requiring program evaluation on or before the thirtieth day
of September, one thousand nine hundred ninety-eight, to be
presented to the Legislature; specifying review and issuance
of a recommendation by the joint committee on governmental
operations not later than the first day of March, one
thousand nine hundred ninety-nine, as to whether the program
should continue; specifying procedures for the continuation
of the program; and specifying procedures for taxpayers to
obtain entitlement to credit in the event program is
discontinued.

Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article thirteen-j, to
read as follows:ARTICLE 13J. NEIGHBORHOOD INVESTMENT PROGRAM.§11-13J-1. Short title.
This article shall be known as the "Neighborhood Investment
Program Act".§11-13J-2. Legislative finding and purpose.
It is the finding of the Legislature that community-based
organizations can be a powerful force in community development.
However, in West Virginia their effectiveness has historically
been weakened by meager resources. Private corporations and
individuals in West Virginia possess the resources to aid
community-based organizations in their efforts to assist
neighborhoods and communities. Due to the lack of clear
incentives, the private and not-for-profit sectors have often not
taken advantage of opportunities to collaborate with community-
based organizations to the full extent possible by investment and
participation in local programs.
Therefore, the neighborhood investment program act is hereby
enacted with the intent that it provide incentives for
contributions to qualifying charitable projects. It is the intent of the Legislature that this act encourage private sector
businesses and individuals to contribute capital to community-
based organizations which establish projects to assist
neighborhoods and local communities through such services as
health care, counseling, emergency assistance, crime prevention,
education, housing, job training and physical and environmental
improvements.§11-13J-3. Definitions.
(a) General. -- When used in this article, or in the
administration of this article, terms defined in subsection (b)
of this section shall have the meanings ascribed to them by this
section, unless a different meaning is clearly required by either
the context in which the term is used, or by specific definition
in this article.
(b) Terms defined.
(1) Affiliate. -- The terms "affiliate" or "affiliates"
include all concerns which are affiliates of each other when
either directly or indirectly:
(A) One concern controls or has the power to control the
other; or
(B) A third party or third parties control or have the power
to control both. In determining whether concerns are
independently owned and operated and whether or not affiliation exists, consideration shall be given to all appropriate factors,
including common ownership, common management and contractual
relationships.
(2) Capacity building. -- The term "capacity building" means
to generally enhance the capacity of the community to achieve
improvements and to obtain the community services described in
items (i) through (v), inclusive of the definition of that term,
as set forth in subdivision (4) of this subsection. Capacity
building includes, but is not limited to, improvement of the
means, or capacity, to:
(i) Access, obtain and use private, charitable and
governmental assistance programs, administrative assistance, and
private, charitable and governmental resources or funds;
(ii) Fulfill legal, bureaucratic and administrative
requirements and qualifications for accessing assistance,
resources or funds; and
(iii) Attract and direct political and community attention
to needs of the community for the purpose of increasing access to
and use of assistance, resources or funds for a given purpose,
goal or need.
(3) Commissioner or tax commissioner. -- The terms
"commissioner" and "tax commissioner" are used interchangeably
herein and mean the tax commissioner of the state of West Virginia, or his or her delegate.
(4) Community services. -- "Community services" means
services, provided at no charge whatsoever, of:
(i) Providing any type of health, personal finance,
psychological or behavioral, religious, legal, marital,
educational or housing counseling and advice to economically
disadvantaged citizens or a specifically designated group of
economically disadvantaged citizens, or in an economically
disadvantaged area; or
(ii) Providing emergency assistance or medical care to
economically disadvantaged citizens or to a specifically
designated group of economically disadvantaged citizens, or in an
economically disadvantaged area; or
(iii) Establishing, maintaining or operating recreational
facilities, or housing facilities for economically disadvantaged
citizens or a specifically designated group of economically
disadvantaged citizens, or in an economically disadvantaged area;
or
(iv) Providing economic development assistance to
economically disadvantaged citizens or a specifically designated
group of economically disadvantaged citizens without regard to
whether they are located in an economically disadvantaged area,
or to individuals, groups or neighborhood or community organizations, in an economically disadvantaged area; or
(v) Providing community technical assistance and capacity
building to economically disadvantaged citizens or a specifically
designated group of economically disadvantaged citizens or to
individuals, groups or neighborhood or community organizations in
an economically disadvantaged area.
(5) Compensation. -- The term "compensation" means wages,
salaries, commissions and any other form of remuneration paid to
employees for personal services.
(6) Corporation. -- The term "corporation" means any
corporation, joint-stock company or association, and any business
conducted by a trustee or trustees wherein interest or ownership
is evidenced by a certificate of interest or ownership or similar
written instrument.
(7) Crime prevention. -- "Crime prevention" means any
activity which aids in the reduction of crime.
(8) Delegate. -- The term "delegate" in the phrase "or his
or her delegate", when used in reference to the tax commissioner,
means any officer or employee of the tax division of the
department of tax and revenue duly authorized by the tax
commissioner directly, or indirectly by one or more redelegations
of authority, to perform the functions mentioned or described in
this article.
(9) Director or director of the West Virginia development
office. -- The term "director" or "director of the West Virginia
development office" means the director of the West Virginia
office.
(10) Economically disadvantaged area. -- The term
"economically disadvantaged area" means:
(A) In a municipality - any area not exceeding fifteen
square miles in West Virginia which contains any portion of an
incorporated municipality and:
(i) In which area the average annual gross personal income
of residents living therein is not more than one hundred twenty-
five percent of the federal designated poverty level for personal
incomes; and
(ii) That is certified as an economically disadvantaged area
by the West Virginia development office.
(B) In a rural area - any area not exceeding twenty-five
square miles in West Virginia:
(i) Which area is located in a rural area and which contains
no incorporated municipalities or portions thereof;
(ii) In which area the average annual gross personal income
of residents living therein is not more than one hundred twenty-
five percent of the federal designated poverty level for personal
incomes; and
(iii) That is certified as an economically disadvantaged
area by the West Virginia development office.
(C) An economically disadvantaged area shall qualify as such
only pursuant to a certification issued by the West Virginia
development office. Such certifications issued by the West
Virginia development office shall expire after the passage of
five calendar years, unless specifically limited to a shorter
time by specific order of the West Virginia development office,
and no area shall hold the status of a certified economically
disadvantaged area for a period of time greater than ten years,
either consecutively or in the aggregate.
(D) The certification of an economically disadvantaged area
shall be made on the basis of current indices of social and
economic conditions, which shall include, but not be limited to,
the median per capita income of the area in relation to the
median per capita income of the state or standard metropolitan
statistical area in which the area is located.
(E) No economically disadvantaged area may be certified
within twenty-five miles of any other certified economically
disadvantaged area. Not more than six economically disadvantaged
areas may hold the status of certified economically disadvantaged
areas at any one time in this state.
(F) At least a majority of all economically disadvantaged areas holding designations as economically disadvantaged areas at
any one time shall be located in rural areas.
(G) Such certification shall be filed with the secretary of
state and shall specifically set forth the boundaries of the
economically disadvantaged area by both description and map, the
date of certification of the area as an economically
disadvantaged area, the date on which such certification will
terminate and a statement of the director's findings as to the
average annual gross personal income of residents living in the
certified economically disadvantaged area.
(11) Economically disadvantaged citizen. -- The term
"economically disadvantaged citizen" means a natural person, who
during the current taxable year has, or during the immediately
preceding taxable year had, an annual gross personal income not
exceeding one hundred twenty-five percent of the federal
designated poverty level for personal incomes, and who is a
domiciliary and resident of this state.
(12) Education. -- "Education" means any type of scholastic
instruction to, or scholarship by, an individual that enables
such individual to prepare for better life opportunities.
Education does not include courses in physical training, physical
conditioning, physical education, sports training, sports camps
and similar training or conditioning courses (except for physical therapy prescribed by a physician or other person licensed to
prescribe courses of medical treatment under West Virginia law).
(13) Eligible contribution. --
(A) An eligible contribution consists of cash, tangible
personal property valued at its fair market value, real property
valued at its fair market value or a contribution of in kind
professional services valued at seventy-five percent of fair
market value.
(B) For purposes of this definition, the value of in kind
professional services will not qualify as an eligible
contribution unless the services are:
(i) Reasonably priced and valued, and reasonably necessary
services customarily and normally provided by the contributor in
the normal course of business to customers, clients or patients
other than those encompassed by the project plan;
(ii) Not reimbursable, in whole or in part, from sources
other than the tax credit provided under this article; and
(iii) Are services which are not available elsewhere in the
community.
(C) The term "professional services" means only those
services provided directly by a physician licensed to practice in
this state, those services provided directly by a dentist
licensed to practice in this state, those services provided directly by a lawyer licensed to practice in this state, those
services provided directly by a registered nurse, licensed
practical nurse, dental hygienist, or other health care
professional licensed to practice in this state and those
services provided directly by a certified public accountant or
public accountant licensed to practice in this state.
(D) Minimum contribution. -- No contribution of cash,
property or professional services or any combination thereof
contributed in any tax year by any taxpayer having a fair market
value of less than five hundred dollars qualifies as an eligible
contribution.
(E) Maximum contribution. -- No contribution of cash,
property or professional services or any combination thereof
contributed in any tax year by any taxpayer having a fair market
value in excess of two hundred thousand dollars qualifies as an
eligible contribution.
(F) Limitations. -- Not more than fifty percent of total
eligible contributions to a certified project may be in kind
contributions. Not more than twenty-five percent of total
eligible contributions made by any taxpayer to any certified
project may be in kind contributions.
(14) Eligible taxpayer. --
(A) The term "eligible taxpayer" means any person subject to the taxes imposed by article twenty-one, twenty-three or twenty-
four of this chapter which makes an eligible contribution to a
qualified charitable organization pursuant to the terms of a
certified project plan for the purpose of providing neighborhood
assistance, community services, or crime prevention, or for the
purpose of providing job training or education for individuals
not employed by the contributing taxpayer or an affiliate of the
contributing taxpayer or a person related to the contributing
taxpayer.
(B) "Eligible taxpayer" also includes an affiliated group of
taxpayers if such group elects to file a consolidated corporation
net income tax return under article twenty-four of this chapter
and if one or more affiliates included in such affiliated group
would qualify as an eligible taxpayer under part (A) of this
paragraph.
(15) Includes and including. -- The terms "includes" and
"including", when used in a definition contained in this article,
shall not be deemed to exclude other things otherwise within the
meaning of the term defined.
(16) Job training. -- "Job training" means instruction to an
individual that enables the individual to acquire vocational
skills so as to become employable or to be able to seek a higher
grade of employment.
(17) Natural person or individual. -- The term "natural
person" and the term "individual" mean a human being. The terms
"natural person" and "individual" do not mean, and specifically
exclude any corporation, limited liability company, partnership,
joint venture, trust, organization, association, agency,
governmental subdivision, syndicate, affiliate or affiliation,
group, unit or any entity other than a human being.
(18) Neighborhood assistance. -- "Neighborhood assistance"
means either:
(A) Furnishing financial assistance, labor, material and
technical advice to aid in the physical or economic improvement
of any part or all of an economically disadvantaged area; or
(B) Furnishing technical advice to promote higher employment
in an economically disadvantaged area.
(19) Neighborhood organization. -- "Neighborhood
organization" means any organization:
(A) Which is performing community services, as defined in
this section; and
(B) Which is exempt from income taxation under Sections
501(c)(3) or (4) of the Internal Revenue Code.
(20) West Virginia development office. -- The term "West
Virginia development office" means the West Virginia development
office.
(21) Partnership and partner. -- The term "partnership"
includes a syndicate, group, pool, joint venture or other
unincorporated organization through or by means of which any
business, financial operation or venture is carried on, and which
is not a trust or estate, a corporation or a sole proprietorship.
The term "partner" includes a member in such a syndicate, group,
pool, joint venture or organization.
(22) Person. -- The term "person" includes any natural
person, corporation, limited liability company or partnership.
(23) Project transferee. -- The term "project transferee"
means any neighborhood organization, qualified charitable
organization, charitable organization or other organization,
entity or person that receives an eligible contribution or part
of an eligible contribution from an eligible taxpayer for the
purpose of directly or indirectly providing neighborhood
assistance, community services, or crime prevention, or for the
purpose of providing job training or education or other services
or assistance pursuant to a project plan. The project transferee
is typically the first entity or person receiving eligible
contributions from eligible taxpayers under a project plan.
However, in the case of eligible contributions of in-kind
services or other eligible contributions or portions thereof made
pursuant to a certified project plan directly to indigent, disadvantaged or needy persons, economically disadvantaged
citizens, or other persons or organizations under the sponsorship
or auspices of any neighborhood organization, qualified
charitable organization, charitable organization or other
organization, entity or person as a certified project
participant, such eligible contributions shall be deemed to have
been made to the entity, organization or person under whose
sponsorship or auspices such eligible contributions are made, and
that entity, organization or person is deemed to be the project
transferee with relation to those eligible contributions. The
project transferee is the entity, organization or person that is
liable under this article for payment of the project
certification fee to the West Virginia development office. The
term "project transferee" shall mean and include any deemed
project transferee, deemed as such under the provisions of this
article.
(24) Qualified charitable organization. -- The term
"qualified charitable organization" means a neighborhood
organization, as defined in this section, which is the sponsor of
a project which has received certification by the director of the
West Virginia development office pursuant to the requirements of
this article: Provided, That no organization may qualify as a
qualified organization for purposes of this article if such organization is not registered with this state as required under
the solicitation of charitable funds act.
(25) Related person. -- The term "related person" or "person
related to" a stated taxpayer means:
(A) An individual, corporation, partnership, affiliate,
association or trust or any combination or group thereof
controlled by the taxpayer; or
(B) An individual, corporation, partnership, affiliate,
association or trust or any combination or group thereof that is
in control of the taxpayer; or
(C) An individual, corporation, partnership, affiliate,
association or trust or any combination or group thereof
controlled by an individual, corporation, partnership, affiliate,
association or trust or any combination or group thereof that is
in control of the taxpayer; or
(D) A member of the same controlled group as the taxpayer.
For purposes of this article, "control", with respect to a
corporation means ownership, directly or indirectly, of stock
possessing fifty percent or more of the total combined voting
power of all classes of the stock of such corporation which
entitles its owner to vote. "Control", with respect to a trust,
means ownership, directly or indirectly, of fifty percent or more
of the beneficial interest in the principal or income of such trust. The ownership of stock in a corporation, of a capital or
profits interest in a partnership or association or of a
beneficial interest in a trust shall be determined in accordance
with the rules for constructive ownership of stock provided in
Section 267(c), other than paragraph (3) of such section, of the
United States Internal Revenue Code, as amended.
(26) State fiscal year. -- "State fiscal year" means a
twelve-month period beginning on the first day of July and ending
on the thirtieth day of June.
(27) Taxpayer. -- The term "taxpayer" means any person
subject to the tax imposed by article twenty-one, twenty-three or
twenty-four of this chapter (or any one or combination of such
articles of this chapter).
(28) Technical assistance. --
(A) The term "technical assistance" means assistance in
understanding, using and fulfilling the legal, bureaucratic and
administrative requirements and qualifications which must be
negotiated for the purpose of effectively accessing, obtaining
and using private, charitable, not-for-profit or governmental
assistance, resources or funds, and maximizing the value thereof.
(B) "Technical assistance" also means assistance provided by
any person holding a license under West Virginia law to practice
any licensed profession or occupation, whereby such person, in the practice of such profession or occupation, assists
economically disadvantaged citizens or the persons in an
economically disadvantaged area by:
(i) Providing any type of health, personal finance,
psychological or behavioral, religious, legal, marital,
educational or housing counseling and advice to economically
disadvantaged citizens or a specifically designated group of
economically disadvantaged citizens, or in an economically
disadvantaged area; or
(ii) Providing emergency assistance or medical care to
economically disadvantaged citizens or to a specifically
designated group of economically disadvantaged citizens, or in an
economically disadvantaged area; or
(iii) Establishing, maintaining or operating recreational
facilities, or housing facilities for economically disadvantaged
citizens or a specifically designated group of economically
disadvantaged citizens, or in an economically disadvantaged area;
or
(iv) Providing economic development assistance to
economically disadvantaged citizens or a specifically designated
group of economically disadvantaged citizens without regard to
whether they are located in an economically disadvantaged area,
or to individuals, groups or neighborhood or community organizations, in an economically disadvantaged area; or
(v) Providing community technical assistance and capacity
building to economically disadvantaged citizens or a specifically
designated group of economically disadvantaged citizens or to
individuals, groups or neighborhood or community organizations in
an economically disadvantaged area.
(29) This code. -- The term "this code" means the code of
West Virginia, one thousand nine hundred thirty-one, as amended.
(30) This state. -- The term "this state" means the state of
West Virginia.

§11-13J-4. Eligibility for tax credits; creation of neighborhood
investment fund; certification of project plans by the West
Virginia development office.

(a) A neighborhood organization which seeks to sponsor a
project and have that project certified pursuant to this article
shall submit to the director of the West Virginia development
office an application for certification of a project plan, in
such form as the director shall prescribe, setting forth the
project to be implemented, the identity of all project
participant organizations, the economically disadvantaged
citizens or a specifically designated group of economically
disadvantaged citizens, to be assisted by the project or the
economically disadvantaged area or areas selected for assistance by the project, the amount of total tax credits to be created by
the proposed project pursuant to the receipt of eligible
contributions from eligible taxpayers under this article, the
amount of the total estimated eligible contributions to be
received pursuant to the project, and the schedule for
implementing the project.
(b) Project certification fee; payment of costs; revolving
fund. --
(1) (A) Project certification fee. -- Any project transferee
that receives eligible contributions under or pursuant to a
certified project plan shall pay to the West Virginia development
office a project certification fee in the amount of three percent
of the amount of the total eligible contributions received by
such project transferee pursuant to the certified project plan.
The project certification fee shall be paid to the West Virginia
development office within thirty days of the receipt of any
eligible contribution, or portion thereof.
(B) Eligible contributions made through direct service to
end users or recipients, or contributions to end users or
recipients. -- In the case of eligible contributions of in-kind
services or other eligible contributions or portions thereof made
pursuant to a certified project plan and contributed or provided
directly to indigent, disadvantaged or needy persons, economically disadvantaged citizens or other persons or
organizations made under the sponsorship or auspices of any
neighborhood organization, qualified charitable organization,
charitable organization or other organization, entity or person
as a certified project participant, such eligible contributions
shall be deemed to have been made to the entity, organization or
person under whose sponsorship or auspices such eligible
contributions are made, and that entity, organization or person
is deemed to be the project transferee with relation to those
eligible contributions. Such deemed project transferee shall be
liable for the project certification fee due for such eligible
contributions.
(C) Computation of fee based on fair market value. -- In the
case of eligible contributions consisting of in-kind services,
tangible personal property or realty, the project transferee
shall pay to the West Virginia development office a project
certification fee in the amount of three percent of the fair
market value of eligible contributions received pursuant to the
certified project plan.
(2) Sanctions for failure to timely pay the project
certification fee. -- Failure to timely pay the project
certification fee imposed by this section shall be grounds for
imposition of any of the following sanctions, to be imposed by the director of the West Virginia development office at the
discretion of the director:
(A) Prospective revocation of the project certification.
No tax credit shall be allowed for any project for which
certification has been revoked for periods subsequent to the
effective date of revocation. Credit taken by any taxpayer in
accordance with this article pursuant to the making of an
eligible contribution to a project transferee pursuant to a
certified project plan prior to the effective date of revocation
of project certification shall not be subject to recapture by
reason of revocation of the certification. However, such credit
shall otherwise be subject to audit and adjustment or recapture
in accordance with the requirements of this article.
(B) Retroactive withdrawal of the project certification.
No tax credit shall be allowed for any project for which
certification has been withdrawn. Credit taken by any taxpayer
in accordance with this article pursuant to the making of an
eligible contribution to a project transferee pursuant to a
certified project plan for which certification is later withdrawn
pursuant to the provisions of this section shall be subject to
recapture upon withdrawal of the certification.
(C) Suspension of the project certification for a stated
period of time.
No tax credit shall be allowed for contributions made during
the suspension period for a project. Credit taken by any
taxpayer in accordance with this article pursuant to the making
of an eligible contribution to a project transferee pursuant to
a certified project plan prior to or subsequent to the suspension
period shall not be subject to recapture by reason of the
suspension. However, such credit shall otherwise be subject to
audit and adjustment or recapture in accordance with the
requirements of this article.
(D) Temporary or permanent disqualification of one or more
project transferees, neighborhood organizations, qualified
charitable organizations, charitable organizations or other
organizations, entities or persons from participation in a
particular specified certified project.
No tax credit shall be allowed under this article for any
contribution made during the disqualification period to any
project transferee, neighborhood organization, qualified
charitable organization, charitable organization or other
organization, entity or person disqualified under this section
from participation in a certified project. Tax credit taken by
any taxpayer in accordance with this article pursuant to the
making of an eligible contribution to any project transferee,
neighborhood organization, qualified charitable organization, charitable organization or other organization, entity or person
pursuant to a certified project plan prior to or subsequent to
the disqualification period shall not be subject to recapture by
reason of the disqualification of the recipient thereof.
However, such credit shall otherwise be subject to audit and
adjustment or recapture in accordance with the requirements of
this article.
(E) Temporary or permanent disqualification of any project
transferee, neighborhood organization, qualified charitable
organization, charitable organization or other organization,
entity or person, or group thereof, from participation in any and
all certified projects currently in existence or to be formed,
proposed or certified under this article:
(i) No tax credit shall be allowed under this article for
any contribution made during the disqualification period to any
project transferee, neighborhood organization, qualified
charitable organization, charitable organization or other
organization, entity or person disqualified under this section
from participation in any and all certified projects under this
article. Tax credit taken by any eligible taxpayer in accordance
with this article pursuant to the making of an eligible
contribution to the project transferee, neighborhood
organization, qualified charitable organization, charitable organization or other organization, entity or person disqualified
from participation in any and all certified projects under this
article, pursuant to a certified project plan prior to or
subsequent to the disqualification period shall not be subject to
recapture by reason of the disqualification. However, such
credit shall otherwise be subject to audit and adjustment or
recapture in accordance with the requirements of this article;
and
(ii) No certification shall be issued during the
disqualification period for any proposed project in which a
project transferee, neighborhood organization, qualified
charitable organization, charitable organization or other
organization, entity or person disqualified under this section
from participation in any and all certified projects is listed as
a proposed project participant.
(F) Any combination of the aforementioned sanctions.
(3) Audits and investigations. -- The West Virginia
development office or the department of tax and revenue, or both,
may initiate and carry out investigations or audits of any
recipient of any eligible contribution under this article, any
eligible taxpayer or any project transferee to determine whether
the project certification fee imposed by this section has been
paid in accordance with the requirements of this article.
(4) Procedures, failure to timely pay the project
certification fee upon written demand. --
(A) Written demand. -- The director of the West Virginia
development office shall, upon a reasonable belief that a project
transferee has failed to timely pay the fee imposed by this
section, issue a written demand for payment thereof, plus
interest determined at the interest rate prescribed under section
seventeen, article ten of this chapter, in such form as the
director of the West Virginia development office may specify.
The director of the West Virginia development office may also
impose a penalty for failure to timely pay the project
certification fee in the amount of twenty percent of the amount
of the project certification fee due and interest due. Such
demand shall notify the project transferee of the opportunity to
show that the project certification fee is not due and owing.
(B) Failure to pay pursuant to written demand. --
Failure of the project transferee to pay any project
certification fee due, with interest and penalties, as stated in
the written demand for payment of the project certification fee,
within thirty days of service of such demand, and failure of the
project transferee to prove to the satisfaction of the director
of the West Virginia development office that the fee imposed by
this section is not due and owing, shall result in a determination by the director of the West Virginia development
office that sanctions shall apply.
(C) Notice of pending sanctions. -- Upon the making of a
determination by the director of the West Virginia development
office that sanctions for failure to pay the project
certification fee apply, the director of the West Virginia
development office shall serve upon the project transferee from
which the project certification fee, or some portion thereof, is
due and owing, a notice of pending sanctions. If the project
transferee from which the certified project fee, or some portion
thereof, is due and owing is not the applicant for project
certification, then an informational copy of the notice of
pending sanctions shall also be served upon the applicant for
project certification.
(D) Service of notice, content of notice. -- The notice of
pending sanctions shall be served upon the delinquent project
transferee in the same manner as an assessment of tax in
accordance with article ten of this chapter. Such notice of
pending sanctions shall state the sanctions to be applied in
accordance with this section, the effective date or dates of such
sanctions, with specific statements of whether any sanction is to
be applied retroactively or in part retroactively, and the
commencement and termination dates for any suspensions of certification or temporary disqualifications of any program
transferee, neighborhood organization, qualified charitable
organization, charitable organization or other organization,
entity or person to be disqualified under this section from
participation in certified projects. The notice of pending
sanctions shall state that sanctions shall be imposed sixty days
after service of the notice of pending sanctions upon the
delinquent project transferee, unless the delinquent project
transferee pays the amount of the project certification fee due
and owing, plus interest and penalties.
(E) Appeals. -- The project transferee may file an appeal of
pending sanctions as if the notice of pending sanctions were an
assessment of tax under article ten of this chapter, and the
matter on appeal shall be subject to the procedures set forth in
article ten of this chapter. On appeal, the burden of proof
shall be on the project transferee to prove that the project
certification fee and associated interest and penalties are not
due and owing. The review on appeal shall be limited to:
(i) The issue of whether a failure to timely pay the project
certification fee or any portion thereof has occurred, the time
period or periods over which such failure occurred, and whether
such failure continues to occur;
(ii) The amount of the project certification fee and interest due; and
(iii) The mathematical and methodological accuracy of the
computation of the project certification fee, interest and
penalties.
(F) Statutory confidentiality. -- No information, document
or proceeding brought pursuant to this section, relating to the
liability of any project transferee for the project certification
fee, interest or penalties imposed under this section is subject
to the confidentiality provisions of article ten of this chapter
or any other confidentiality provision of this code. However, any
proceeding relating to any amount of tax due or the recapture of
tax credit taken under this article or any adjustment of the
amount of tax credit taken under this article is subject to the
provisions of article ten of this chapter, including all
statutory confidentiality provisions, and shall be subject to all
other applicable statutory tax confidentiality provisions of this
code.
(G) Effect of a final determination, waiver of penalties or
sanctions. -- The notice of pending sanctions shall become final
sixty days after service, unless an appeal is filed under this
section, and shall not be subject to further appeal by the
recipient thereof. When a determination has become final that a
project transferee has failed to timely pay the project certification fee, or any part thereof, the sanctions described
in the notice of pending sanctions shall apply, effective as of
the date set forth in that notice, unless the project
certification fee, interest and penalties due are paid to the
West Virginia development office within thirty days of the date
on which the determination has become final. The twenty percent
penalty authorized under this section may be imposed, adjusted,
withdrawn or waived, in whole or in part, at the discretion of
the director of the West Virginia development office. However,
payment of the project certification fee and interest due shall
not be subject to waiver. The sanctions for failure to pay the
project certification fee authorized under this section may be
imposed, adjusted, withdrawn or waived, in whole or in part, at
the discretion of the director of the West Virginia development
office.
(c) Within sixty days after the close of the regular meeting
of the neighborhood investment advisory board next succeeding the
date of receipt of a complete application for approval of a
proposed project, the director of the West Virginia development
office shall certify, or deny certification of, the proposed
project for which such application has been filed. Those
applications not approved by the director within sixty days as
aforesaid shall be deemed disapproved by operation of law.
(d) The West Virginia development office shall promptly
notify an applicant as to whether an application for
certification of a project plan has been approved or disapproved.
(e) Those prospective qualified charitable organizations
which receive certification of a project plan, and which
otherwise comply with the requirements of this article so as to
become qualified charitable organizations, as defined in section
three of this article, may receive eligible contributions, as
defined in said section. Eligible taxpayers which make eligible
contributions shall receive a tax credit as provided in section
five of this article. No tax credit may be granted under this
article for any contribution except eligible contributions made
to a project which has been certified in accordance with the
requirements of this article prior to the making of the
contribution. No tax credit may be granted under this article
for any contribution which, if allowed, would cause the amount of
tax credit generated by the project to exceed the maximum amount
of tax credit for which the project was certified as stated in
the application for project certification filed with the West
Virginia development office.
(f) All applications for certification of a project filed
with the West Virginia development office, whether such project
is certified or denied certification, are public information which may be viewed and copied by the public and, at the
discretion of the West Virginia development office, published by
the West Virginia development office.
(g) Revolving fund. --
(1) For the purpose of permitting payments to be made and
costs to be met for operation of the program established by this
article, there is hereby created a revolving fund for the West
Virginia development office, which shall be known as the
neighborhood investment fund. All money received by the West
Virginia development office under this article shall be paid into
the state treasury, and shall be deposited to the credit of the
neighborhood investment fund, and shall be expended only for the
purposes of defraying the costs of the neighborhood investment
program advisory board and the West Virginia development office
in administering the program established pursuant to this
article, unless otherwise directed by the Legislature.
(2) The neighborhood investment fund shall be accumulated
and administered as follows:
(A) There shall be appropriated from the general revenue
fund the sum of sixty thousand dollars to be transferred to the
neighborhood investment fund to create a revolving fund which,
together with other payments into this fund as provided in this
article, shall be utilized to defray the costs of the neighborhood investment program advisory board and the West
Virginia development office in administering the program
established pursuant to this article, unless otherwise directed
by the Legislature.
(B) Payments received under this article shall be deposited
into the neighborhood investment fund.
(C) Any appropriations made to the neighborhood investment
fund shall not be deemed to have expired at the end of any fiscal
period.§11-13J-4a.Neighborhood investment program advisory board.
(a) There is hereby created a neighborhood investment
advisory board, which shall consist of twelve voting members and
the chairperson.
(b) Chairperson. --
(1) The director of the West Virginia development office, or
the designee of the director of the West Virginia development
office, shall be the ex officio chairperson of the neighborhood
investment program advisory board.
(2) The chairperson shall vote on actions of the board only
in the event of a tie vote, in which case the chairperson's vote
shall be the deciding vote.
(c) Board members. --
(1) Four of the members shall each be officers or members of the boards of directors of unrelated corporations which are not
affiliated with one another and which are currently licensed to
do business in West Virginia.
(2) Four of the members shall each be executive directors,
officers or members of the boards of directors, of unrelated not-
for-profit organizations which are not affiliated with one
another, which currently hold charitable organization status
under Section 501(c)(3) of the Internal Revenue Code and which
are currently licensed to do business in West Virginia.
(3) Four of the members shall be economically disadvantaged
citizens of the state:
(i) An appointee will qualify as an economically
disadvantaged citizen of this state if the appointee is an
economically disadvantaged person who, for the taxable year
immediately preceding the year of the member's appointment to the
board, had an annual gross personal income that was not more than
one hundred twenty-five percent of the federal designated poverty
level for personal incomes, and who has been a domiciliary and
resident of this state for at least one year at the time of the
appointment;
(ii) Continued qualification and reappointment. -- An
appointee or member appointed under this subdivision is not
disqualified from appointment to the board or from completion of the member's ongoing term of service on the board if the
appointee's or member's income in the year of appointment or in
any year subsequent to the year of appointment exceeds one
hundred twenty-five percent of the federal designated poverty
level. However, a serving member shall not qualify under this
subdivision for reappointment to the board unless such member has
had, for the taxable year immediately preceding the year of the
member's reappointment to the board, an annual gross personal
income that was not more than one hundred twenty-five percent of
the federal designated poverty level for personal incomes, and
has been a domiciliary and resident of this state for at least
one year at the time of the member's reappointment to the board:
Provided, That such member may be reappointed pursuant to
qualification under subdivision (1) or (2) of this subsection,
notwithstanding disqualification under this subdivision, if such
member meets the requirements of subdivision (1) or (2),
respectively, of this subsection at the time of reappointment.
(d) Limitations; terms of members; appointments. --
(1) Not more than four members (exclusive of the
chairperson) shall be appointed from any one congressional
district. Not more than seven of the members (exclusive of the
chairperson) may belong to the same political party. Members
shall be eligible for reappointment. However, no member may serve for more than three consecutive terms.
(2) Appointment terms. --
(A) Except for initial appointments described under
subdivision (3) of this subsection, and except for midterm
special appointments made to fill irregular vacancies on the
board, members shall be appointed for terms of three years each.
(B) Except for midterm special appointments made to fill
irregular vacancies on the board, appointment terms shall begin
on the first day of July of the beginning year. All appointment
terms, special and regular, shall end on the thirtieth day of
June of the ending year.
(3) Initial appointments. -- The members first appointed
shall be appointed for a term commencing on the first day of
July, one thousand nine hundred ninety-six. In order that the
terms may be staggered so that four members are appointed each
year:
(A) Four of the members first appointed shall, for the first
term, be appointed for terms of one year. Those four members
shall be appointed so that at least one appointee is appointed
from each of the three member appointee groups specified in
subdivisions (1), (2) and (3), subsection (c) of this section.
(B) Four of the members first appointed shall, for the first
term, be appointed for terms of two years. Those four members shall be appointed so that at least one appointee is appointed
from each of the three member appointee groups specified in
subdivisions (1), (2) and (3), subsection (c) of this section.
(C) Four of the members first appointed shall, for the first
term, be appointed for terms of three years. Those four members
shall be appointed so that at least one appointee is appointed
from each of the three member appointee groups specified in
subdivisions (1), (2) and (3), subsection (c) of this section.
(D) Subsequent appointments of members, except for midterm
special appointments made to fill irregular vacancies on the
board, shall be for terms of three years in accordance with
subdivision (2) of this subsection.
(4) Selection of members. --
(A) For the initial appointment of members under subdivision
(3) of this subsection, members shall be selected by the director
of the West Virginia development office.
(B) At the end of a member's term, the chairperson shall
solicit new member nominations from the board and appoint the
most appropriate person to serve, in compliance with the
requirements set forth in this section.
(C) Vacancies on the board shall be filled in the same
manner as the original appointments for the duration of the
unexpired term.
(e) Quorum; meetings; funding. --
(1) The presence of a majority of the members of the board
constitutes a quorum for the transaction of business. The board
shall elect from among its members a vice chairperson and such
other officers as are necessary.
(2) The board shall meet not less than six times during the
fiscal year, and additional meetings may be held upon a call of
the chairperson or of a majority of the members.
(3) Board members shall be reimbursed by the West Virginia
development office for sums necessary to carry out
responsibilities of the board and for reasonable travel expenses
to attend board meetings.
(f) Annual report. -- The board shall make a report to the
governor and the Legislature within thirty days of the close of
each fiscal year. The report shall include summaries of all
meetings of the board, an analysis of the overall progress of the
program, fiscal concerns, the relative impact the program is
having on the state and any suggestions and policy
recommendations that the board may have. The report shall be
public information made available to the general public for
examination and copying. The board is authorized to publish the
annual report, should the board elect to do so.
(g) Duties of the board. --
(1) Administrative duties. --
(A) The board shall be responsible for advising the West
Virginia development office concerning the administrative
obligations of the program.
(B) The board shall approve application forms, tracking
systems and program record-keeping systems and methods.
(2) Project evaluation and approval; prohibition on project
promotion. --
(A) The board shall select and approve projects, which may
then be certified by the director of the West Virginia
development office pursuant to section four of this article.
(B) Only projects sponsored by qualified charitable
organizations, as defined in section three of this article, may
be approved by the board or certified by the director of the West
Virginia development office. An applicant that does not hold
current status as a charitable organization under Section
501(c)(3) of the Internal Revenue Code may not receive project
approval from the board, or project certification from the
director of the West Virginia development office, for any
proposed project. Failure of any applicant to provide convincing
documentation proving such status as a charitable organization
under Section 501(c)(3) of the Internal Revenue Code shall result
in automatic denial of project approval and denial of project certification under this article.
(C) The board may not assist project sponsors or others in
their efforts to solicit support or donations from any
governmental, corporate or individual source for projects
certified under this article.
(3) Criteria for evaluation. -- In evaluating projects for
approval, the board shall give priority to projects based upon
the following criteria. A proposed project shall be favored if:
(A) The project is community-based. A project is community-
based if:
(i) The project is to be managed locally, without national,
state, multi-state or international affiliations;
(ii) The project will benefit local citizens in the
immediate geographic area where the project is to operate; and
(iii) The sponsor of the project is a local entity, rather
than a statewide, national or international organization or an
affiliate of a statewide, national or international organization.
(B) The proposed project will primarily serve low income
persons.
(C) The proposed project will serve highly distressed
neighborhoods or communities.
(D) The project plan incorporates collaborative partnerships
among nonprofit groups, businesses, government organizations and other community organizations.
(E) The applicant or sponsor of the project has demonstrated
a proven capacity to deliver the proposed services.
(F) The applicant or sponsor of the project historically
maintains low administrative costs.
(G) The applicant produces a strong showing of need for the
services which the proposed project would provide, and produces
convincing documentation of that need.
(H) The proposed project is innovative, novel, creative or
unique in program approach.
(4) In the event that an applicant is directly or indirectly
affiliated with one or more board members, those members may
discuss the proposals with the board, but may not have a vote
when that project is considered for final approval or
disapproval.
(5) Project approval by the board. -- Proposed projects
shall be approved or denied approval by a majority vote of the
board after competitive comparison with proposed projects of
other applicants.
(h) Project certification by the director of the West
Virginia development office. --
(1) Upon issuance of approval for a project by the board,
the approved project shall be certified by the director of the West Virginia development office: Provided, That no
certification may issue for any project, even though the project
may have been approved by the board, if the issuance of
certification for such project will cause the aggregate amount of
tax credits certified to exceed the limitation set forth in
section eight of this article or elsewhere in this article. No
certification may be issued by the director of the West Virginia
development office for any project which has not been approved by
the board.
(2) The West Virginia development office shall promptly
notify applicants of the issuance of certification for their
projects, and shall issue tax credit vouchers to certified
project applicants in the amount of the tax credit represented by
the project.
(3) The West Virginia development office may provide
incidental technical support and guidance to projects certified
under this article and may monitor the progress of the projects.
The West Virginia development office shall make a quarterly
report to the board on the progress of certified projects and the
program generally.§11-13J-5. Amount of credit allowed.
(a) Credit allowed. -- Eligible taxpayers shall be allowed
a credit against taxes imposed by this state, the application of which and the amount of which shall be determined as provided in
this article.
(b) Amount of credit. -- The amount of credit allowable is
fifty percent of the amount of the taxpayer's "eligible
contribution".
(c) Application of credit over five years. -- The amount of
credit allowable must be taken over a five-year period, at the
rate of one fifth of the amount thereof per tax year, beginning
with the tax year in which the taxpayer irrevocably transfers its
eligible contribution to the project plan transferee.
Notwithstanding any other provision of this article to the
contrary, the tax credit which a taxpayer receives under this
article may not exceed one hundred thousand dollars in any tax
year of the eligible taxpayer. A tax credit shall be allowable
under this article only for the tax year of the eligible taxpayer
in which the eligible contribution is irretrievably transferred
to the project plan transferee, and for the next succeeding four
tax years.§11-13J-6. Application of annual credit allowance.
(a) In general. -- The aggregate annual credit allowance for
a current tax year is an amount equal to the sum of the
following:
(1) The one-fifth part allowed under section five of this article for an eligible contribution placed into service or use
during a prior tax year; plus
(2) The one-fifth part allowed under section five of this
article for an eligible contribution placed into service or use
during the current tax year.
(b) Application of current year annual credit allowance. --
The amount determined under subsection (a) of this section shall
be allowed as a credit for tax years ending on and after the
first day of July, one thousand nine hundred ninety-six, as
follows:
(1) Business franchise taxes. --
The amount determined under subsection (a) of this section
shall be applied to reduce up to fifty percent of the taxes
imposed by article twenty-three of this chapter for the tax year
(determined after application of the credits against tax provided
in section seventeen of said article, but before application of
any other allowable credits against tax).
(2) Corporation net income taxes. -- After application of
subdivision (1) of this subsection, any unused credit shall next
be applied to reduce up to fifty percent of the taxes imposed by
article twenty-four of this chapter, for the tax year (determined
before application of allowable credits against tax).
(3) Personal income taxes. --
(A) If the eligible taxpayer is an electing small business
corporation (as defined in Section 1361 of the United States
Internal Revenue Code), a limited liability company treated as a
partnership for purposes of the federal income tax, a partnership
or a sole proprietorship, then any unused credit (after
application of subdivisions (1) and (2) of this subsection) shall
be allowed as a credit against up to fifty percent of the taxes
imposed by article twenty-one of this chapter on income of
proprietors, partners or shareholders, subject to the limitations
set forth in parts (B) and (C) of this subdivision.
(B) Electing small business corporations, partnerships and
other unincorporated organizations shall allocate the credit
allowed by this article among the members thereof in the same
manner as profits and losses are allocated for the tax year.
(C) No credit may be allowed under this section against any
tax due under article twenty-one of this chapter on any wage,
salary or other compensation paid to any employee of any electing
small business corporation, limited liability company,
partnership, other unincorporated organization or sole
proprietorship or against any amount of tax due on any wage,
salary or other compensation reported on federal form W2.
(c) Unused credit forfeited. -- If any annual credit remains
after application of subsections (a) and (b) of this section, the amount thereof shall be forfeited. No carryover to a subsequent
tax year or carryback to a prior tax year shall be allowed for
the amount of any unused portion of any annual credit allowance
under this article.
(d) Addition of deductions, decreasing adjustments or
decreasing modifications taken in determining taxable income for
which credit is taken. -- Any deduction, decreasing adjustment or
decreasing modification taken by any taxpayer in determining
federal taxable income which affects West Virginia taxable income
or in determining West Virginia taxable income under article
twenty-one or twenty-four of this chapter for the taxable year
for any charitable contribution, or payment or portion thereof,
which qualifies as an eligible contribution under this article
and for which credit is claimed, shall be added to West Virginia
taxable income in determining the tax liability of the taxpayer
under article twenty-one or twenty-four of this chapter, as
appropriate, before application of the credit allowed under this
article for the taxable year.§11-13J-7. Assertion of the tax credit against tax.
(a) Any eligible taxpayer which desires to claim a tax
credit as provided in this article shall file with the West
Virginia tax commissioner, in such form as the tax commissioner
may prescribe, an annual tax credit reporting schedule stating the amount of the eligible contribution which the taxpayer has
made. The eligible taxpayer shall file with the tax credit
reporting schedule a certificate, issued by the director of the
West Virginia development office, evidencing approval of the
project plan by the director of the West Virginia development
office, pursuant to which the contribution was made.
(b) In the tax credit reporting schedule required under this
section, the taxpayer shall provide all information required by
the tax commissioner's prescribed form.
(c) The tax credit reporting schedule shall be filed with
the annual return for the taxes imposed by article twenty-four of
this chapter for the tax year in which the eligible contribution
is first irrevocably transferred to a transferee pursuant to a
certified project plan: Provided, That, if the eligible taxpayer
is not required to file a tax return under article twenty-four of
this chapter, then such tax credit reporting schedule shall be
filed with the annual return for the taxes imposed by article
twenty-three of this chapter for such year: Provided, however,
That, if the eligible taxpayer is not required to file a tax
return under article twenty-three or twenty-four of this chapter,
then such tax credit reporting schedule shall be filed with the
annual return for the taxes imposed by article twenty-one of this
chapter for such year.
(d) The tax credit reporting schedule shall be accompanied
by such proof of payment as the tax commissioner may prescribe,
showing that the amount to be contributed under the certified
project plan has been paid to the transferee designated in the
certified plan solely for the certified project.
(e) The tax commissioner may disallow any credit claimed
under this article for which a properly completed tax credit
reporting schedule or a properly completed and valid statement or
proof of payment of the eligible contribution, or other required
documentation, statements or proofs are not timely filed.§11-13J-8. Total maximum aggregate tax credit amount.
(a) The amount of tax credits allowed under this article may
not exceed two million dollars in any state fiscal year.
(b) Applications for project certification shall be filed
with the West Virginia development office beginning on and after
the first day of July, one thousand nine hundred ninety-six. The
West Virginia development office shall record the time of filing
of each application for certification of a project plan required
under section four of this article. All complete and valid
applications filed shall be considered for approval or
disapproval in a timely manner by the neighborhood assistance
advisory board at the regular meeting of the board next
succeeding the date when such applications are filed, and at such continuing meetings as may be necessary to dispose of business in
a timely manner. The board may, in its discretion, consider
applications for approval or disapproval at special or interim
meetings for expedited processing.
(c) When the total amount of tax credits certified under
this article equals the maximum amount of tax credits allowed, as
specified in subsection (a) of this section, in any state fiscal
year, no further certifications shall be issued in that same
fiscal year. Upon approval of a project by the board, the
director of the West Virginia development office shall certify
the approved project unless certification is prohibited by the
limitations and requirements set forth in this article.
(d) All applications filed in any state fiscal year and not
certified during the state fiscal year in which they are filed
shall be null and void by operation of law on the last day of the
state fiscal year in which they are filed, and all applicants
which elect to seek certification of a project plan shall file
anew on and after the first day of the immediately succeeding
state fiscal year without regard to whether such applicants have
previously filed and failed to obtain certification for their
application, or have never before filed.

If it appears upon audit or otherwise that an eligible
taxpayer has not made contribution as represented, or should it
appear that contributions made by an eligible taxpayer were made
to the direct or indirect benefit of the eligible taxpayer making
the contribution or to the direct or indirect benefit of any
person related to the eligible taxpayer making the contribution,
the credit previously allowed under this article shall be
recaptured, and amended returns shall be filed for any tax year
for which the credit was taken. Any additional taxes due under
this chapter shall be remitted with the amended return or returns
filed with the tax commissioner, along with interest, as provided
in section seventeen, article ten of this chapter, and a ten
percent penalty, which may be waived by the tax commissioner if
the taxpayer shows that the overclaimed amount was due to
reasonable cause and not due to willful neglect, and such other
penalties and additions to tax as may be applicable pursuant to
the provisions of article ten of this chapter. Notwithstanding
the provisions of article ten of this chapter, the statute of
limitations for the issuance of an assessment of tax by the tax
commissioner shall be five years from the date of the filing of
any tax return on which this credit was taken or five years from
the date of payment of any tax liability calculated pursuant to
the assertion of this credit, whichever is later.§11-13J-10. Public information relating to tax credit.
The tax commissioner shall annually publish in the state
register the name and address of every taxpayer asserting this
credit on a tax return, and the amount of any credit asserted on
a tax return under this article by each such taxpayer, and the
confidentiality provisions of section four-a, article one, or
section five-d, article ten of this chapter, or of any other
provision of this code, do not apply to such information.§11-13J-11. Audits and examinations; information sharing.
(a) In addition to, or instead of, discretionary audits of
eligible taxpayers which may be carried out by the tax
commissioner, the tax commissioner may, at the tax commissioner's
discretion, perform joint audits or examinations in concert with
the West Virginia development office, of, or independently audit
or examine, the books and records and other information, as
appropriate, of any taxpayer, or of any person, organization or
entity which has filed an application for certification of a
project plan under section four of this article with the West
Virginia development office, or of any taxpayer which has
asserted this credit on a tax return, or of any person,
organization or entity believed to have relevant information.
(b) For purposes of joint audits, or any administrative or
judicial proceeding or procedure relating to any tax credit taken, asserted or sought under this article, the tax
commissioner may share such tax information as the tax
commissioner may deem appropriate with the West Virginia
development office, notwithstanding the provisions of section
four-a, article one, or section five-d, article ten of this
chapter, or any other provision of this code to the contrary.

§11-13J-12. Program evaluation; expiration of credit;
preservation of entitlements.

On or before the thirtieth day of September, one thousand
nine hundred ninety-eight, the board shall secure an independent
review of the program created under this article and shall
present the findings of that review to the Legislature. Pursuant
to this report, and any independent evaluation that the
Legislature or the joint committee on government operations may
wish to initiate, the joint committee on government operations
shall issue a recommendation to the Legislature, not later than
the first day of March, one thousand nine hundred ninety-nine, as
to whether the program should continue. Should the joint
committee on government operations recommend that the program not
be terminated, appropriate legislation shall be prepared
specifying that the program shall continue in such manner as the
joint committee on government operations may recommend, and the
same shall be submitted to the Legislature by the joint committee on government operations in a timely manner for consideration by
the Legislature during the then ongoing legislative session.
Should the joint committee on government operations fail to
recommend the continuation of the program, as aforesaid, then,
notwithstanding any other provision of this article to the
contrary, no entitlement to the tax credit under this article
shall result from any contribution made to any certified project
after the first day of July, one thousand nine hundred ninety-
nine, and no credit shall be available to any taxpayer for any
such contribution made after that date. However, taxpayers which
have gained entitlement to the credit pursuant to the
requirements of this article for eligible contributions made to
certified projects prior to the first day of July, one thousand
nine hundred ninety-nine, shall retain that entitlement and apply
the credit in due course pursuant to the requirements and
limitations of this article, and subject to all provisions
thereof.